SPY kept on going up this week just as I speculated in last weekend’s entry, the daily chart is overbought but without a negative divergence while the weekly shows a negative divergence, so I expect some kind of retrace or side-way movement this week to set up the negative divergence in the daily. Because this is the last week of the year and a short one the correction may have to wait another week, but any longer and it runs the risk of breaking the negative divergence on the weekly chart.
The 60 min reversal long position the system opened last Friday, was closed this Friday with a profit of 2.01 points.
In the short term the system issued a 60 min short signal, but I will be surprised if it breaks below the daily trend line.
Battle Plan for the 12/30/2013
60 min short under 183.4
* Stop loss lines should be triggered if there is an interval close above them (i.e. 60 min or 120 min ), they are published in the daily blog and updated during trading hours on twitter.
* Take profit lines should be triggered immediately when crossed, they are usually issued during the trading day on twitter.
* Entry signals should be triggered when crossed, but take into account that until there is a confirmation (i.e. close of the interval across the entry signal) , the signal can become a reversal signal.
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